SsangYong suffers biggest operating loss in decade since 2009

SsangYong Motors’ balance sheet went from bad to worse in 2019, due to a sharp fall in exports.

The automaker said Friday its operating losses skyrocketed to 281.9 billion won ($237.4 million), a whopping 339.3 percent increase from 64.2 billion won a year earlier, and taking its run of losses to 12 consecutive quarters.

The figure is the worst since 2009, when the company saw a loss of 295 billion won in the aftermath of global financial crisis.

Despite a minor 2.2 percent dip in revenue to 3.6 trillion won, net losses jumped to 341.4 billion won, up from 61.8 billion won from a year earlier.

Aggravating export sales have played a significant role in the fall of the carmaker as global consumer confidence shrank due to concerns over Brexit and the US-China trade dispute.

The loss in revenue was led mainly by a decline in exports, while domestic sales held up relatively well.

Export sales plummeted 40 percent from 9,995 to 6,013 units in the fourth quarter last year, witnessing 43 percent and 77 percent declines in the Asia-Pacific and South American markets, respectively.

Yearly export sales dived 20 percent from 34,169 to 27,446 units in 2019, a stark contrast from a 1 percent drop in the domestic market.

By Kim Byung-wook (kbw@heraldcorp.com)